Why is it in the news?

• The International Energy Agency (IEA) has initiated discussions with India for its potential full membership.

About International Energy Agency (IEA)

• The International Energy Agency (IEA) is a prominent intergovernmental organization headquartered in
• Established in 1974 in response to global oil supply disruptions, the IEA’s primary objective is to ensure reliable, affordable, and clean energy for its members and the global community.
• It provides advice and facilitates cooperation among industrialized nations on energy policies, with a focus on energy security and sustainability.
• To qualify for full membership in the IEA, a country must be a member of the Organisation for Economic Co-operation and Development (OECD) and meet specific criteria:

1) Maintain strategic reserves equivalent to 90 days of the previous year’s net imports.

2) Implement demand restraint programs to reduce oil consumption.

3) Establish legislation and organization to operate Coordinated Emergency Response Measures (CERM).

• Currently, the IEA consists of 31 member countries, along with 13 association countries and 5 accession countries. Association countries, including India, Brazil, China, and South Africa, participate in IEA activities without full membership status.

Rationale for India’s Full Membership

• India’s full membership would mark a significant shift in international energy governance, facilitating collaboration across the energy spectrum, particularly in energy security and clean energy transitions.
• Given India’s status as the world’s most populous country, its participation is crucial in safeguarding global energy security.
• With India being the fastest-growing major economy, its energy demand is expected to surge significantly in the coming decades due to industrialization and urbanization.
• India’s membership would drive inclusive energy transitions, especially in renewable energy, and contribute significantly to combating climate change.
• Full membership strengthens mutual trust and cooperation among member countries, enhancing global energy security, stability, and sustainability.
• Access to IEA membership facilitates extensive knowledge exchange, bringing in talent, technology, and innovation to address energy challenges effectively.

Key Concerns

• India’s lack of OECD membership poses a significant hurdle in achieving full IEA membership.
• India’s strategic oil reserves fall short of IEA requirements, posing a challenge in meeting the necessary criteria.
• Alignment with IEA’s energy policies may necessitate substantial changes to India’s current energy strategies and policies.

Conclusion

• India, representing 17% of the global population, acknowledges its responsibility in climate action with 4% of global carbon emissions.
• Collaborative efforts between NITI Aayog and the IEA aim to foster sustainable growth, industrialization, and improved living standards while minimizing carbonization, with transformative impacts beyond India’s borders.